Simons Construction starts work this month on a new £22m private hospital in Birmingham for Circle Health.

Above: Circle Birmingham

The go-ahead for start of work follows completion of a financing deal for the project between Circle Holdings and affiliates of Medical Properties Trust (MPT), a US-based real estate investment trust.

The new hospital will be built within the old Pebble Mill site in Edgbaston, Birmingham, which is currently being developed more broadly by Calthorpe Estates as a healthcare campus called the Edgbaston Medical Quarter.

Under the deal with MPT, Circle will sell its long-term lease on the Birmingham plot to an affiliate of MPT for £2.7m and MPT will develop a 39-bed, 6,500 m2 acute care facility to be operated by Circle, with scope to expand to a six-theatre hospital.

Construction of Circle Birmingham is expected to complete before the end of 2018.

Gleeds is project and cost manager for the project. Gleeds director for health, Roger Pulham, said: “The leading-edge project incorporates innovative design and planning that responds to the demands of today’s healthcare sector, allowing Circle Health to facilitate the best possible provision for the years to come.”